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	<title>Comments on: Our DIY climate change challenge</title>
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		<title>By: Powershop News &#187; Blog Archive &#187; So how&#8217;s your savings going?</title>
		<link>http://blog.powershop.co.nz/?p=199#comment-3417</link>
		<dc:creator>Powershop News &#187; Blog Archive &#187; So how&#8217;s your savings going?</dc:creator>
		<pubDate>Mon, 14 Dec 2009 17:52:57 +0000</pubDate>
		<guid isPermaLink="false">http://blog.powershop.co.nz/?p=199#comment-3417</guid>
		<description><![CDATA[[...] are now a little over the half-way mark in our DIY 10 in 10 challenge. Hamish (our Head of Sales &amp; Marketing) and myself have posted some interim results on the 10 [...]]]></description>
		<content:encoded><![CDATA[<p>[...] are now a little over the half-way mark in our DIY 10 in 10 challenge. Hamish (our Head of Sales &amp; Marketing) and myself have posted some interim results on the 10 [...]</p>
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		<title>By: Ari Sargent</title>
		<link>http://blog.powershop.co.nz/?p=199#comment-3312</link>
		<dc:creator>Ari Sargent</dc:creator>
		<pubDate>Tue, 08 Dec 2009 19:26:07 +0000</pubDate>
		<guid isPermaLink="false">http://blog.powershop.co.nz/?p=199#comment-3312</guid>
		<description><![CDATA[@Alan:

When we changed customers from an &#039;All inclusive&#039; rate to a &#039;Day/Night&#039; we committed to ensure that no customer would be worse off overall as a result and that the &#039;Weekend rebates&#039; would be a bonus.

In your case, yes you are currently paying approximately 21c/kWh for daytime energy, but you are only paying around 11.7c/kWh for your night usage. Overall you are still paying around 18c/kWh for your total consumption and you will receive your weekend rebate on top of this, so you are definitely better off for the change.

So you do not need to do anything differently from what you used to do. There should be no more hassle for you. However, if you choose to change when you use your power there are additional savings available to you. Indeed, that was one of the reasons we created the weekend tariff. We acknowledge that shifting consumption into the night is not always practical, but shifting it into the weekend may be, for example drying clothes in winter time - it is not at all practical to do this at midnight, but doing it during the daytime at the weekend is.]]></description>
		<content:encoded><![CDATA[<p>@Alan:</p>
<p>When we changed customers from an &#8216;All inclusive&#8217; rate to a &#8216;Day/Night&#8217; we committed to ensure that no customer would be worse off overall as a result and that the &#8216;Weekend rebates&#8217; would be a bonus.</p>
<p>In your case, yes you are currently paying approximately 21c/kWh for daytime energy, but you are only paying around 11.7c/kWh for your night usage. Overall you are still paying around 18c/kWh for your total consumption and you will receive your weekend rebate on top of this, so you are definitely better off for the change.</p>
<p>So you do not need to do anything differently from what you used to do. There should be no more hassle for you. However, if you choose to change when you use your power there are additional savings available to you. Indeed, that was one of the reasons we created the weekend tariff. We acknowledge that shifting consumption into the night is not always practical, but shifting it into the weekend may be, for example drying clothes in winter time &#8211; it is not at all practical to do this at midnight, but doing it during the daytime at the weekend is.</p>
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		<title>By: Alan</title>
		<link>http://blog.powershop.co.nz/?p=199#comment-3304</link>
		<dc:creator>Alan</dc:creator>
		<pubDate>Tue, 08 Dec 2009 10:21:32 +0000</pubDate>
		<guid isPermaLink="false">http://blog.powershop.co.nz/?p=199#comment-3304</guid>
		<description><![CDATA[I have a question,we have just in the last two weeks gone to a smart meter.The main reason to take advantage of the weekend cheap power (im in chch).what i have found out is that im buying power at around 18 cents but this is charged at 21cents during the day rate.To me this seems a little strange as i would have thought 18 cents was the top i would pay and any saving would be lower than that not to make an average. this does not save me any money at all and just means its more of a hassle to try and use more power at night to keep the average at 18cents where i was buying it around that price before the smart meter]]></description>
		<content:encoded><![CDATA[<p>I have a question,we have just in the last two weeks gone to a smart meter.The main reason to take advantage of the weekend cheap power (im in chch).what i have found out is that im buying power at around 18 cents but this is charged at 21cents during the day rate.To me this seems a little strange as i would have thought 18 cents was the top i would pay and any saving would be lower than that not to make an average. this does not save me any money at all and just means its more of a hassle to try and use more power at night to keep the average at 18cents where i was buying it around that price before the smart meter</p>
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		<title>By: Ari Sargent</title>
		<link>http://blog.powershop.co.nz/?p=199#comment-3302</link>
		<dc:creator>Ari Sargent</dc:creator>
		<pubDate>Tue, 08 Dec 2009 08:24:14 +0000</pubDate>
		<guid isPermaLink="false">http://blog.powershop.co.nz/?p=199#comment-3302</guid>
		<description><![CDATA[@Jared:

Basically any customer who uses less than 8,000 kWh pa (9,0000 kWh pa on SI) at their primary residence is less profitable than larger users. The lower the consumption, the less profitable to the extent that some will be loss making - the exact crossover varies by network company. All retailers are required by law to offer tariffs to low users that have low fixed charges, and that do not disdvantage them at 8,000 kWh - in our case our fixed charges are zero.

So if you are normally a 12,000 kWh pa customer and are away for 3m we will recover the costs over 9,000 kWh (making a simplifying assumption that your consumption is evenly spread) - and this is fine, you fully pay the fixed costs over the year.

If you are normally an 8,000 kWh pa customer and are away for 3m then we will recover 75% (6,000/8,000) of the fixed costs (ie. the same as if you were an even smaller customer). In this case we do not fully recover the fixed costs.]]></description>
		<content:encoded><![CDATA[<p>@Jared:</p>
<p>Basically any customer who uses less than 8,000 kWh pa (9,0000 kWh pa on SI) at their primary residence is less profitable than larger users. The lower the consumption, the less profitable to the extent that some will be loss making &#8211; the exact crossover varies by network company. All retailers are required by law to offer tariffs to low users that have low fixed charges, and that do not disdvantage them at 8,000 kWh &#8211; in our case our fixed charges are zero.</p>
<p>So if you are normally a 12,000 kWh pa customer and are away for 3m we will recover the costs over 9,000 kWh (making a simplifying assumption that your consumption is evenly spread) &#8211; and this is fine, you fully pay the fixed costs over the year.</p>
<p>If you are normally an 8,000 kWh pa customer and are away for 3m then we will recover 75% (6,000/8,000) of the fixed costs (ie. the same as if you were an even smaller customer). In this case we do not fully recover the fixed costs.</p>
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		<title>By: Jared</title>
		<link>http://blog.powershop.co.nz/?p=199#comment-3301</link>
		<dc:creator>Jared</dc:creator>
		<pubDate>Tue, 08 Dec 2009 06:27:42 +0000</pubDate>
		<guid isPermaLink="false">http://blog.powershop.co.nz/?p=199#comment-3301</guid>
		<description><![CDATA[Ari,
This kinda ties in to what I was talking about... If a customer uses no power in a month, thus having a $0 bill, Powershop would still need to recover the costs of line charges by setting it higher the next month - or not in the case of a &lt; 8000 kwh user in a primary residence.
I guess this is the same as having a daily charge but with a months delay... and a fairer way of doing it (based on rolling usage rather than waiting 12 months to get a price plan rebate - re mercury).
But how do you recover the costs of lines for a primary residence household who take a 3 month holiday...?]]></description>
		<content:encoded><![CDATA[<p>Ari,<br />
This kinda ties in to what I was talking about&#8230; If a customer uses no power in a month, thus having a $0 bill, Powershop would still need to recover the costs of line charges by setting it higher the next month &#8211; or not in the case of a &lt; 8000 kwh user in a primary residence.<br />
I guess this is the same as having a daily charge but with a months delay&#8230; and a fairer way of doing it (based on rolling usage rather than waiting 12 months to get a price plan rebate &#8211; re mercury).<br />
But how do you recover the costs of lines for a primary residence household who take a 3 month holiday&#8230;?</p>
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	<item>
		<title>By: Ari Sargent</title>
		<link>http://blog.powershop.co.nz/?p=199#comment-3297</link>
		<dc:creator>Ari Sargent</dc:creator>
		<pubDate>Tue, 08 Dec 2009 02:30:05 +0000</pubDate>
		<guid isPermaLink="false">http://blog.powershop.co.nz/?p=199#comment-3297</guid>
		<description><![CDATA[@JohnC:

We don&#039;t have a target profit that we intend to make off customers. Our commitment is to try and save most customers money. Indeed, very low users are loss making for us - we have to pay the fixed lines and metering costs irrespective of your usage, and unlike other retailers we do not have daily fixed charges (which is approximately $120pa for low users and as much as $350pa for standard users).

We do have a number of FAQs that describe our pricing in &lt;a href=&quot;http://www.powershop.co.nz/faq.html#faq-30-10&quot; rel=&quot;nofollow&quot;&gt;our FAQs&lt;/a&gt;. I will take your feedback on board and try and provide some more specific information around this issue is included as well.

I apologise that you weren&#039;t given any warning of this change. I have also just reviewed our procedures with our Contact Centre and from now on we will email all customers at the time that their pricing drops below the low user threshold.

Once again, apologies for the surprise - I have taken your feedback on board and we&#039;ll definitely be trying to improve our communications.]]></description>
		<content:encoded><![CDATA[<p>@JohnC:</p>
<p>We don&#8217;t have a target profit that we intend to make off customers. Our commitment is to try and save most customers money. Indeed, very low users are loss making for us &#8211; we have to pay the fixed lines and metering costs irrespective of your usage, and unlike other retailers we do not have daily fixed charges (which is approximately $120pa for low users and as much as $350pa for standard users).</p>
<p>We do have a number of FAQs that describe our pricing in <a href="http://www.powershop.co.nz/faq.html#faq-30-10" rel="nofollow">our FAQs</a>. I will take your feedback on board and try and provide some more specific information around this issue is included as well.</p>
<p>I apologise that you weren&#8217;t given any warning of this change. I have also just reviewed our procedures with our Contact Centre and from now on we will email all customers at the time that their pricing drops below the low user threshold.</p>
<p>Once again, apologies for the surprise &#8211; I have taken your feedback on board and we&#8217;ll definitely be trying to improve our communications.</p>
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		<title>By: JohnC</title>
		<link>http://blog.powershop.co.nz/?p=199#comment-3296</link>
		<dc:creator>JohnC</dc:creator>
		<pubDate>Tue, 08 Dec 2009 00:50:56 +0000</pubDate>
		<guid isPermaLink="false">http://blog.powershop.co.nz/?p=199#comment-3296</guid>
		<description><![CDATA[Hmm,
So does this mean that my rates will keep going up until my variable rate equates to the profit you intend to make from me (presuming the primary place of residence condition does not apply)?

And when were you going to tell me that you were departing from the rates you imply I was going to be paying? (If I hadnt checked I might not have found out for another month)!!

You don&#039;t exactly make this behaviour clear in any of your publications!]]></description>
		<content:encoded><![CDATA[<p>Hmm,<br />
So does this mean that my rates will keep going up until my variable rate equates to the profit you intend to make from me (presuming the primary place of residence condition does not apply)?</p>
<p>And when were you going to tell me that you were departing from the rates you imply I was going to be paying? (If I hadnt checked I might not have found out for another month)!!</p>
<p>You don&#8217;t exactly make this behaviour clear in any of your publications!</p>
]]></content:encoded>
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	<item>
		<title>By: Ari Sargent</title>
		<link>http://blog.powershop.co.nz/?p=199#comment-3295</link>
		<dc:creator>Ari Sargent</dc:creator>
		<pubDate>Tue, 08 Dec 2009 00:42:05 +0000</pubDate>
		<guid isPermaLink="false">http://blog.powershop.co.nz/?p=199#comment-3295</guid>
		<description><![CDATA[@JohnC:

I have just looked at your account and you have extremely low usage - I wouldn&#039;t be surprised if you are our lowest.

What your pricing reflects is the recovery of fixed network and metering costs over that small usage. With other retailers you would be paying a fixed daily charge, so you will still be saving with us.

In any event, if this property is your primary residence you are eligible to go on our low user pricing - which will drop your prices back. You can select this option under &#039;My settings&#039;. I have asked someone from our contact centre to call you to discuss this with you.

As I mentioned, other retailers have fixed daily charges that we don&#039;t and with us you will only pay for energy you use, so you still benefit from reducing consumption.]]></description>
		<content:encoded><![CDATA[<p>@JohnC:</p>
<p>I have just looked at your account and you have extremely low usage &#8211; I wouldn&#8217;t be surprised if you are our lowest.</p>
<p>What your pricing reflects is the recovery of fixed network and metering costs over that small usage. With other retailers you would be paying a fixed daily charge, so you will still be saving with us.</p>
<p>In any event, if this property is your primary residence you are eligible to go on our low user pricing &#8211; which will drop your prices back. You can select this option under &#8216;My settings&#8217;. I have asked someone from our contact centre to call you to discuss this with you.</p>
<p>As I mentioned, other retailers have fixed daily charges that we don&#8217;t and with us you will only pay for energy you use, so you still benefit from reducing consumption.</p>
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	<item>
		<title>By: JohnC</title>
		<link>http://blog.powershop.co.nz/?p=199#comment-3294</link>
		<dc:creator>JohnC</dc:creator>
		<pubDate>Tue, 08 Dec 2009 00:25:58 +0000</pubDate>
		<guid isPermaLink="false">http://blog.powershop.co.nz/?p=199#comment-3294</guid>
		<description><![CDATA[Hey I&#039;ve just noticed that my powersop rate has jumped from the published rate $0.21ish/unit to over $0.30/unit.
Is it the powershop way to penalise low users (what climate challenge I ask, save 10% but still pay more??) , and for that matter charge them rates different to the ones you puport to charge?

Doesn&#039;t seem right or fair!]]></description>
		<content:encoded><![CDATA[<p>Hey I&#8217;ve just noticed that my powersop rate has jumped from the published rate $0.21ish/unit to over $0.30/unit.<br />
Is it the powershop way to penalise low users (what climate challenge I ask, save 10% but still pay more??) , and for that matter charge them rates different to the ones you puport to charge?</p>
<p>Doesn&#8217;t seem right or fair!</p>
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		<title>By: MichaelT</title>
		<link>http://blog.powershop.co.nz/?p=199#comment-3282</link>
		<dc:creator>MichaelT</dc:creator>
		<pubDate>Sun, 06 Dec 2009 22:43:52 +0000</pubDate>
		<guid isPermaLink="false">http://blog.powershop.co.nz/?p=199#comment-3282</guid>
		<description><![CDATA[Ari, 
   Thank you for the quick reply. I must admit I had overlooked the good idea of non powershop customers tracking and reducing their consumption. That&#039;s obviously important because they are in a majority - at least for the moment  :)
As I may be out at midnight Copenhagen time I decided to use NZ time.

I must admit that I brought forward a couple of sessions of dehydrating fruit (very energy intensive) to get them out of the way before the period started and that has biased my pre Copenhagen average. So I&#039;ll be looking to achieve a bigger reduction.]]></description>
		<content:encoded><![CDATA[<p>Ari,<br />
   Thank you for the quick reply. I must admit I had overlooked the good idea of non powershop customers tracking and reducing their consumption. That&#8217;s obviously important because they are in a majority &#8211; at least for the moment  <img src='http://blog.powershop.co.nz/wp-includes/images/smilies/icon_smile.gif' alt=':)' class='wp-smiley' /><br />
As I may be out at midnight Copenhagen time I decided to use NZ time.</p>
<p>I must admit that I brought forward a couple of sessions of dehydrating fruit (very energy intensive) to get them out of the way before the period started and that has biased my pre Copenhagen average. So I&#8217;ll be looking to achieve a bigger reduction.</p>
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